The IRS is officially accepting 2016 tax returns and our clients are anxious to settle up with good ol’ Uncle Sam. For the past few years, important tax documents regarding taxable withdrawals and realized gain and loss information have been mailed directly to investors from the account custodian (Charles Schwab, Fidelity, TD Ameritrade, U.S. Bancorp, etc.). This year will be no different and we have compiled the answers to some frequently asked questions about this process below.
When can I expect to receive my 1099 and other tax documents?
Custodians will begin mailing a 1099 and year-end summary for all taxable accounts in mid-February 2017. This document will detail the realized gain and loss information for each taxable account, as well as any distributions that may have been taken. Management fees for 2016 will also be listed, should you wish to include this information on your tax return.
For retirement and education savings accounts taking distributions, a 1099-R or 1099-Q will be mailed in mid-to late January 2017. If applicable, this document will also detail the total amount withheld for taxes from your distributions.
What should I do if I don’t receive this information in the mail?
The custodians also make your tax information available online. If you don’t receive the documents in the mail or would like to access them without waiting for the postal service, you can log into your account online through the custodian’s website. If you need to set up online access for your accounts, please refer to the following links for Charles Schwab, Fidelity, and TD Ameritrade.
- Schwab: http://www.schwab.com/public/schwab/nn/pl_help/online_enrollment_help.html
- Fidelity: https://www.fidelity.com/customer-service/faqs-managing-your-profile
- TD: https://www.tdameritrade.com/logon-help.page
Please note, the documents will not be available online until mid- to late February 2017. Accessing them online will simply allow you to view the documents before they arrive in your mailbox.
What’s the deal with revised 1099s?
A revised 1099 can be issued by the custodian for a variety of reasons up until the tax deadline in April. In an effort to lower your chances of having to file an amended tax return, please wait as long as possible to file your taxes. If you do receive a revised 1099, we strongly advise you to consult with your tax preparer to determine whether or not it is necessary to file an amended tax return.
Even though this year’s April 18 deadline gives you a few extra days to file, we don’t recommend procrastinating! If you have any questions, reach out to your financial advisor or tax preparer prior to the deadline.